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Archive for the tag “Tax Revenue”

Uganda is still not ready for IMF’s PCI!

“The Policy Coordination Instrument (PCI) is a non-financing tool open to all members of the International Monetary Fund (IMF). It enables them to signal commitment to reforms and catalyze financing from other sources. The establishment of the PCI is part of the Fund’s broader effort to strengthen the global financial safety net—a network of insurance and loan instruments that countries can draw on if confronted with a crisis.” (International Monetary Funds – ‘IMF Policy Coordination Instrument (PCI) 26.07.2017).

This here is really spelling out the missing dots in the budget and monetary policy wise, as the IMF has concluded a visit, but told that certain aspects are missing. Even explaining that the Republic have to be careful about borrowing money. As the Republic tend to do these days for all sorts of projects and building infrastructure all around the country. However, the IMF isn’t praising Uganda, the IMF is telling what it needs, if they want to be part of the PCI. That is important, because being part of that, then the state will have systems and ways to gain outside sources of funding and also safety mechanisms in the needs of rainy days. Therefore, following this program would be healthy for the economy, but will the National Resistance Movement and President Museveni comply to this? Would they?

“The authorities have made progress in setting economic policy objectives for FY18/19 and the medium-term. Fiscal policy seeks to keep public debt at a sustainable level which requires raising tax collection and prioritizing spending needs, while protecting key infrastructure projects and social expenditures. Monetary policy targets core inflation of 5 percent. Bank of Uganda aims to maintain international reserves at 4 to 4½ months of imports. Structural reforms would focus on revenue mobilization, public financial and investment management, reducing domestic arrears, enhancing financial sector stability and development, and putting in place the remaining elements of the framework for managing future oil revenues. The mission reached agreement on many key elements of a possible 3-year program under the Policy Coordination Instrument, but further progress in some areas is still needed. Once the FY18/19 budget has been approved as agreed, the mission could resume discussions” (International Monetary Funds – ‘International Monetary Fund (IMF) Staff Concludes Visit to Uganda’ 31.05.2018).

It isn’t the first time the IMF and World Bank says there policies and monetary programs needs changes, needs to be amended and fixed, so it is safer. This is something that always comes back. The NRM are clearly not listening or interested in listening. They are pre-occupied with the handshakes of the State House and the insider trading that they like to do. Not have accountability and transparency, because then all the tools of the shed is in the open. President Museveni doesn’t want his ghosts, his fake projects and his forged paperwork to be in the open. That would hurt his pride and also humiliate him. That is the reality of it all.

Therefore, the state has a long walk ahead still, even with the new revenue sources, as they are not considering the implications yet on the public. Just more revenue for revenues sake, but not how hard the new taxes really will have. They will hurt the public and the poorest the most. Nevertheless, they are not a concern for the state; they are more bargain chips for needed donor funds anyway.

President Museveni will not be interested in opening the books and showing the reality. We know that, therefore the PCI will not introduced shortly, neither will the accountability or transparency change either. It is not in his interest to revolutionize that. Then he would humiliate himself, which he only does to Opposition leaders, not to himself. Peace.

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IMF statement on Uganda’s current Economic framework has a “grey” list, but a steady core inflation!

The International Monetary funds have concluded yet another visit to Uganda. As todays statement and insights to the economy is dim. There is not much prospects or much goodness to take out of it. Unless, you are thinking to invest while the inflations are rising and hoping it does not stop. Even though the needless to say, it has been like this before after General Elections in Uganda. That the economy has suffered a blow and a shock, which has hurt the economy and food prices. Therefore, sparked demonstrations and uprisings, like that last big one in Walk to Work and Activist for Change in 2011. It is clearly on the same path, but just in 2017 instead. President Yoweri Museveni likes to repeat himself!

“Inflation has edged up, mainly reflecting the effects of the drought. Food price inflation rose from 5 percent year-on-year in September 2016 to 22 percent in April 2017. With this, headline inflation recorded 6.8 in April 2017. Core inflation stood at 4.9 percent, in line with the Bank of Uganda’s (BoU’s) 5 percent target” (IMF, 2017). These numbers are showing the decline and increase of common commodities, even if the Core Inflation is around the estimated level; the food prices are showing the problems in the economy in general.

“The authorities have made some progress on structural reforms. Two structural benchmarks have been met on time, three with delay, and the remaining five are pending. Most notably, the authorities moved forward the legislative agenda that will support Uganda’s exit from the Financial Action Task Force “grey” list—the laws now await President Museveni’s assent. The Ministry of Finance, Planning, and Economic Development published reconciled reports on the stock of outstanding arrears at end-June 2016 (3.2 percent of GDP). Pending reforms include sending the BoU Act Amendments to Parliament, publishing the report on end-December unpaid bills, and sending to cabinet a policy for regulating mobile money” (IMF, 2017). The GoU and President Museveni have not complied totally and made laws objectively transparent. Therefore, there are laws awaiting the approval and be requested to Parliament, as the state reserves and budgets are still enforced with the will of the President. In addition, a proof of the maladministration is the amount of budget arrears that was in last budget year, which will hit the economy, as the bills have to be paid this year.

“Uganda’s external position is broadly consistent with fundamentals and desirable policies in 2016. The current account deficit is projected to temporarily increase over the next 5 years as infrastructure and oil sector investment ramp up further. Achieving the envisaged growth dividend of these investments is essential to maintaining external stability—just as for public debt sustainability. International reserves at end-December 2016 stood at US$3 billion (5¼ months of next year’s imports), above the adequacy level suggested by the IMF’s metric for credit-constrained economies. Going forward, the BoU can purchase reserves opportunistically and would meet the EAC convergence criterion of 4½ months of imports. The flexible exchange rate regime is serving Uganda well” (IMF, 2017). Therefore, the government and IMF envisions that the future prospects of oil monies will be sustainable for the current loans into infrastructure projects. It even envision it and with that will ensure external stability and trust into the economic climate of Uganda, that shows that the trust in future gains is the ones; that makes people have faith in the Ugandan economy.

This is all here proof in stated language that the IMF are looking through the budgets and their laws. Nevertheless, is not addressing the trillions shillings suddenly disappearing, neither the Presidential Handshake, as these are just figment of imagination for the foreign economic advisors. They just do not see it or does not want to see it. Peace.

Reference:

IMF – ‘Uganda: Staff Concluding Statement of the 2017 Article IV Consultation Mission and Discussions for the 8th Review under the Policy Support Instrument’ (16.05.2017) link: http://www.imf-fmi.africa-newsroom.com/press/uganda-staff-concluding-statement-of-the-2017-article-iv-consultation-mission-and-discussions-for-the-8th-review-under-the-policy-support-instrument?lang=en

Opinion: Eric Trump are right, under the Trump Administration, the US is becoming a “Third World State”!

It’s really sad that we’re in an environment where tax returns are leaked by whoever it may be” (…) “Just think about it. Think about how dangerous that is, how third world that is on a practice that happened. When personal information is put out by people for political agendas. As a civilian, it’s actually scaryEric Trump on Fox News (Tani, 2017).

It is just one of these days where the sons of President Donald Trump speaks their mind and hits the nail. The nail is in the coffin, with the knowledge of the plans to make the republic less attractive, less business-friendly, more lassiez-faire and more focused on army than on progressive financial instruments and regulation to create growth. Trump Administration is busy with deporting millions, building a wall and starting trade-wars. The U.S. Government does not need to be transparent or accountable while doing so. Especially, not in the minds of one of his sons. That claims something unique and special. I have claimed in the near past that under President Trump, the U.S. Government could turn the Republic into a Banana Republic, a sort of style government that could be described by others as a third world one. Therefore, let the dictionary explain that!

Eric Trump needs a definition of the Third World:

1: a group of nations especially in Africa and Asia not aligned with either the Communist or the non-Communist blocs” (…) “2: an aggregate of minority groups within a larger predominant culture” (…) “3: the aggregate of the underdeveloped nations of the world” (Merriam-Webster).

So the United States can itself soon be fitted, not that it is an Asian or African nation, neither Communist, but still it is getting underdeveloped by the way the financial framework and industry is set-up under the Trump Administration. Where the Industry and Financial industry has the Administration by the balls and no eager of taking care of nature or the resources, except for eating the profits without giving anything back to the Republic. Just like the Oil Industry in Nigeria or in Ghana. The same as the mining and mineral industry in the Democratic Republic of Congo. So the United States under President Trump, will be similar. Eric Trump is not so far off, just not the way he thought he would be.

Another man’s vision:

This brings about complete dysfunction. It makes everything — economy, politics, roads, bridges, police, school — broken and shitty. Those who can leave do. Making it worse. This leads to more extremism, and more corruption, and more cynicism. And sometimes extreme violence. Because the other side becomes evil” (…) “The US has been shifting towards all four of these over the last 30 years, with inequality leading the way. We are more divided, economically and socially, then we have ever been (we are less divided racially. But only marginally so.)” (Arnade, 2016).

So when you have a system on the brink of collapse, a wealthy elite eating of the government plate and settling score to not pay their bills to the public, while the citizens and middle-class cannot build a steady life or afforded needed services, you know there are something wrong with the system and the state. That makes the Eric Trump words so right, that United States is becoming more like a third world country, with a sophisticated army, but cannot afford health care, schools or infrastructure. Just like the countries President Trump doesn’t want to affiliate with or been seen with. Since him and his advisor Bannon are supposed to be superior, and like a dictator in a Third World country, he believes he is always right and isn’t wrong.

So one smudge of evidence of his fathers Tax Returns from 2005 leaked to MSNBC Rachel Maddow, proves the realization of the state, that the Trump Administration would dislike. As they are not capping the debt, neither taking into account their ideas of taxation and tax-releases, as much as their will to deregularte industry and financial institutions. Therefore, leading the space of more expenses and negative environmental policies, that damage earth and only gains profit for a slim elite. Just like a Third World Country.

This is degrading for the United States, but the harsh truth, the ideas and policies in the making, the killing of health insurance, the idea of building the giant nuclear silos, while not paying for food for the starving. Proves that the U.S. Government are no closer to countries it does not want to be affiliated with, but still can be consider to be assimilated with. President Trump and his administration is clearly not wishing to be differing from chauvinistically taking charge and not caring what effect it has. Clearly, it is only his image that matter, just like any big-man and authoritarian leader.

So, soon we can say that the United States is underdeveloped and need aid, as their waters are daft, the industry is lacking technology, the roads are more potholes than tarmac, the bridges are weak, their railways not working and often not trusted. The United States has soon more expensive foreign imported goods, than what they produce and is losing money on their export of cash crops as soya and other grain. Therefore, President Trump leading his Republic to become underdeveloped or become a Third World Country.

Reference:

Arnade, Chris – ‘USA: A Third World Country in the making’ (05.10.2016) link: https://medium.com/@Chris_arnade/usa-a-third-world-county-in-the-making-14064ea5c534#.ah2gi0loi

Tani, Maxwell – ‘Eric Trump blasts Trump’s tax return leak on Maddow: ‘Think about how dangerous…how third world that is’ (19.03.2017) link: http://nordic.businessinsider.com/eric-trump-tax-return-leak-maddow-third-world-2017-3?

Merriam-Webster – ‘third world’ link: https://www.merriam-webster.com/dictionary/third%20world

IMF Executive Board Completes the Seventh Review Under the Policy Support Instrument for Uganda (11.01.2017)

UGX Pic

Uganda’s economy has performed reasonably well in a complex environment.

WASHINGTON D.C., United States of America, January 11, 2017 – On January 5, the Executive Board of the International Monetary Fund (IMF) completed the seventh review of Uganda’s economic program under the Policy Support Instrument (PSI).1 The Board’s decision was taken on a lapse of time basis.2 In completing the review, the Board granted a waiver of the nonobservance of the end-June 2016 assessment criterion on the overall deficit of the central government.

The PSI for Uganda was approved by the Board on June 28, 2013 (see Press Release No. 13/78), and a one-year extension was approved on June 6, 2016 (see Press Release No. 16/263).

Uganda’s economy has performed reasonably well in a complex environment. Growth slowed marginally to 4.8 percent in FY15/16, reflecting muted sentiment in an election year and adverse global and regional developments. The current account deficit improved by 1 percentage point to 5.9 percent of GDP, and the Shilling has stabilized after a sharp depreciation in 2015. Growth is projected to nudge up to 5 percent in FY16/17.

Program performance under the PSI has been mixed. Tight monetary policy in 2015 has helped contain inflation in the target range, and the Bank of Uganda (BoU) has started an easing cycle in April 2016. Reserve cover remains adequate. Fiscal revenue and deficit targets were missed, reflecting lower-than-expected growth and election effects. Investment spending fell short, while current expenditure overshot. Structural reforms have progressed, albeit with some delays.

The banking sector remains overall well capitalized, despite elevated non-performing loans. The BoU appropriately took over an undercapitalized bank and is identifying a strategic investor.

Uganda remains at a low risk of debt distress. The scaling-up of infrastructure investment implies a temporary increase in debt, putting a premium on domestic revenue mobilization and ensuring that public investment yields the intended growth dividend.

Looking ahead, priorities include close cooperation with the Financial Action Task Force to ensure Uganda’s swift exit from its “gray” list; strengthening domestic arrears monitoring; and amending the Bank of Uganda Act to reinforce central bank independence.

1 The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF’s Executive Board, signal to donors, multilateral development banks, and markets the Fund’s endorsement of a member’s policies (see imf.org/external/np/exr/facts/psi.htm). Details on Uganda’s current PSI are available at imf.org/uganda.

2 The Executive Board takes decisions without a meeting when it is agreed by the Board that a proposal can be considered without convening formal discussions.

FYI: President Trump will create a Banana Republic out of the US!

trump-land

Well, ladies and gentleman the super-power called the United States of America, is a dying dinosaur that Michael Moore or even Jay-Z doesn’t have the power to change. Today was a shock for many, even for me as the American Electorate decided to elect a Demagogue of ill-rhetoric towards certain ethnic groups like the Latin-American, Women and so-on. Donald Trump in his power and commander-in-chief will remarkably create havoc.

All of this is well known, but what the United States’ citizens didn’t think about when they voted against the establishment on protest against the D.C. power-structure they voted for a man with certain traits that can put certain pieces of the Government into shambles. So before I start; for those of you who don’t know, here is the definition of a banana republic!

“It was coined in a 1904 book of fiction by O. Henry, an American writer. Henry (whose real name was William Sydney Porter) was on the run from Texan authorities, who had charged him with embezzlement” (…) “His phrase neatly conjures up the image of a tropical, agrarian country. But its real meaning is sharper: it refers to the fruit companies from the United States that came to exert extraordinary influence over the politics of Honduras and its neighbours. By the end of the 19th century, Americans had grown sick of trying to grow fruit in their own chilly country. It was sweeter and cheaper by far to import it instead from the warmer climes of Central America, where bananas and other fruit grow quickly. Giants such as the United Fruit Company—an ancestor of Chiquita—moved in and built roads, ports and railways in return for land. In 1911 the Cuyamel Fruit Company, another American firm (which was later bought by United), supplied the weapons for a coup against the government of Honduras, and prospered under the newly installed president. In 1954 America’s Central Intelligence Agency (CIA) backed a coup against the government of Guatemala, which had threatened the interests of United. (Historians still debate whether the CIA’s motive was to protect United or, as many now believe, to nip Communism in the bud.) Hence the real meaning of a “banana republic”: a country in which foreign enterprises push the government around” (The Economist, 2013).

Why do I believe this, it’s because of all his sort-of promises over the months. There is all kind of activities that proves the clear indications of a Banana Republic on the rise. The Americans might think otherwise, that is because there are blind on how the state really is.

The United States recorded a Government Debt to GDP of 104.17 percent of the country’s Gross Domestic Product in 2015. Government Debt to GDP in the United States averaged 61.94 percent from 1940 until 2015, reaching an all time high of 121.70 percent in 1946 and a record low of 31.70 percent in 1974. Government Debt to GDP in the United States is reported by the U.S. Bureau of Public Debt” (Trading Economics).

So the average debt level or ratio is staggering already. This is not tackled because the creditors accept the debt levels are raising, just as seen with the numbers from Trading Economics are showing during 30 years the percentage has gone up over 70 %, which should be frightening to any economy. When you have that level of debt, you should be able to have a heavy tax-base to collect and pay the debt.

us-news-trump-quote

Taxing under Trump:

“US taxes are low relative to those in other developed countries. In 2012, US taxes at all levels of government represented 24 percent of GDP, compared with an average of 34 percent of GDP for the 34 member countries of the Organisation for Economic Co-operation and Development (OECD)” (…) “The United States collects relatively less revenue dedicated to retirement, disability, and other social security programs—22 percent of total tax revenue—than the 26 percent OECD average” (…) “Property taxes provided more than twice as large a share of US tax revenue—12 percent in 2012—than the OECD average of 5 percent. Almost all revenue from taxes on property in the United States is collected by state and local governments” (…) “The United States relies less on taxes on goods and services (including both general consumption taxes and taxes on specific goods and services) than any other OECD country, collecting 18 percent of tax revenue this way compared with 33 percent for the OECD. The value-added tax (VAT)—a type of general consumption tax collected in stages—is the main source of consumption tax revenue, employed worldwide in 160 countries including all 34 OECD member countries except the United States. Most consumption tax revenue in the United States is collected by state and local governments” (Hoo & Toder, 2006).

So when the Federal and Republic itself has such a giant debt ratio, the taxes should be high and should be to the levels of actually having the ability to pay it back. As they do not even have VAT on goods that is very normal world-wide, but apparently isn’t a thing in the United States. This proves the mismanagement of potential tax-base that the Government need to succeed to pay their debt. This is before the Election yesterday.

This is the taxes planned under Trump: “According to the Tax Foundation’s Taxes and Growth Model, the plan would reduce federal revenue by between $4.4 trillion and $5.9 trillion on a static basis. The amount depends on the nature of a key business policy provision” (…) “After accounting for the larger economy and the broader tax base, the plan would reduce revenues by between $2.6 trillion and $3.9 trillion after accounting for the larger economy, depending on the nature of a key policy provision” (…) “On a static basis, the Trump tax plan would increase the after-tax incomes of taxpayers in every income group. The bottom 80 percent of taxpayers (those in the bottom four quintiles) would see an increase in after-tax income between 0.8 percent and 1.9 percent, under both policy assumptions.  Taxpayers in the top quintile would see a 4.4 percent increase in after-tax income under the higher-rate assumption, or 8.7 percent under the lower-rate assumption. Those in the top decile would see a 5.4 percent increase in after-tax income under the higher-rate assumption, or 9.3 percent under the lower-rate assumption. Finally, taxpayers in the top 1 percent would see the largest increase in after-tax income on a static basis, driven by both the lower top marginal tax rate and the lower corporate income tax. Under the higher-rate assumption this increase would be 10.2 percent, and under the lower-rate assumption this increase would be 16.0 percent” (Cole, 2016).

So when the government are axing it income, while the economy running on a deficit your making no-sense. Your continue to spend on deficit while cutting taxes; the taxed ones are the ones who voted for Trump, the bottom 80% will get higher taxes, while corporations and 1% riches will get less. So the richer will get richer. A real proof of a Banana Republic where the solidarity towards the ones who needs so. They who voted for him is the ones that will pay on his tax-plan, which is ironic.

pbstwig

This is on the direct economic sense, now on health care. Here he proves again he will hurt the ones who voted for him, the poor and what is left of the working-class:

“The policies would cause almost 21 million people to lose their insurance coverage, as the replacement health care policies would only cover 5 percent of the 22 million individuals who would lose coverage upon the repeal of Obamacare. This would almost double the number of Americans without health insurance” (…) “The largest component of this estimate comes from the “repeal.” The campaign website proposes to “completely repeal Obamacare,” which we assume to mean repealing the Affordable Care Act’s regulations, subsidies, Medicaid expansion, Medicare savings, and tax increases. Although repealing the coverage provisions would save about $1.1 trillion, based on Congressional Budget Office (CBO) estimates (adjusted for recent legislation and changes in the budget window), repealing the legislation’s tax increases and Medicare cuts would cost a combined $1.6 trillion. In total, this means repeal would cost $480 billion – or $260 billion including the economic benefits of repeal” (Committee for a responsible Federal Budget, 2016).

So the Trump Administration are planning to hurt their own, the ones that has gotten through the Obamacare gotten some sorts of subsidized medical insurance, something he wants to repeal and will even make sure to cost the state more. So the educated minds will know that people has to carry insurance on their own while the state pays more to abolish the Obamacare. The 21 million individuals will regret questioning the medical treatment through Obamacare, as the Federal State will add more money. So the people are getting higher tax for the same 80% who losing their health insurance. Do the American citizens prefer punishing themselves?

As with the true implications of NAFTA:

“Customs duties reductions led to increases in trade with the other two countries of 11% in Canada, 41% in the United States, and 118% in Mexico, for the period between 1993 and 2011.5 In terms of value, American trade with Canada and Mexico increased from US$481 billion in 1993 to US$1.1 trillion in 2015. While Donald Trump claims that Americans “don’t make anything anymore,” implying that NAFTA is to blame, the American manufacturing sector has increased production by 58% since the deal came into effect” (Bedard, 2016).

160315100618-trump-quote-workers-crushed-780x439

So the results of NAFTA are apparently different in reality than what comes across when coming to Trump, so the reality hasn’t mattered. He wants to dissolve or change the rules and regulations, this will make it harder to export and import products between Canada and Mexico into the United States. The United States need free-movement of products and industrial products to be able to have the Corporate Capitalism that drives the USA.

So with lower taxes in general, a higher cost of health-care without concern for the 21 million without health insurance. They now are getting more problems with exporting and importing the needed products and raw-material has been possible and even at longest part of the NAFTA agreement has been positive to the US. So the regulation and cooperation with neighbours will be harder because of barriers that will be created with abolishing the NAFTA.

This is still all economic implications… then you have the gun-control, the war-lord aspects and the other social policies mixed with the economic aspect that turns the ones giant and great nation into tatters, if the President Donald Trump gets to do as he pleases without questions.

We should consider it with the implication on the policies and the foreign affairs. The US Government would lose with their plans on playing hardball with NATO and others. With the Muslims ban and deportation, also the Latin-American population that has been singled out; these groups can hurt the economy and also the basic workforce who does the needed services needed in society. That these will be sent out because of their ethnicity and faith will also prove that the United States isn’t the leaders of free-world, but another tyranny under President Trump. The fear and loathing of the Republican President Trump! That will do like the Americans did during Second World-War when Japanese for being so we’re detained into camps, or if he pleases send them packing.

This racial laws and deportations will hurt the economy and make sure the state becomes a Banana Republic; What is special is that the United States will have a free-flow of guns, ammunition, but will make it harder to import goods and also export goods with worse deals, have lesser taxes, still high debt yield and add expenses on health-care while the citizens has to cover themselves. This while the US President hasn’t a plan to help lower-classes as the minimum-pay or salaries increase for the 80% who still get added tax, also pay more for health care. The US Electorate got all reasons for feeling foolish if they even read this.

Bananas and Banana Company we’re President William Howard Taft did what he could to save the companies. Now the new President might try to replicate this, but he forgets the needed international community and production as the needed bolts, tools and manufacturing are inter-connected. That is something that the modern day President Trump needs.

Side Note – International Partnerships:     

So if he builds walls, gets into whiny bitch mode and becomes a fully-blown attack paranoid mode, than the international partners will not accept being constantly bullied. I am sure that Philippines C-I-C President Rodigro Duterte will be tossed around for another power or human being. Neither will Russian President Vladimir Putin and even German Chancellor Angela Merkel will not accept it. So the price of him being brash and irresponsible thin-skinned versus the ones that questions his actions or words, isn’t really suitable with the trading partners and allies that the U.S. still needs. The US doesn’t live in a vacuum and not the only one with a giant defence and has much money to spend like on AGOA and others.

So congratulation on becoming a Banana-Republic, ready to become muffled with after playing king-pin… for decades; as your economic prospects under the Trump Administration and regime doesn’t look healthy. Peace.

Reference:

Bedard, Mathieu – ‘NAFTA: DONALD TRUMP’S CRITICISMS ARE UNFOUNDED’ (07.2016) link: http://www.iedm.org/files/lepoint1016_en.pdf

Committee for a responsible Federal Budget – ‘Analysis of Donald Trump’s Health Care Plan’ (09.05.2016) link: http://crfb.org/blogs/analysis-donald-trumps-health-care-plan

Cole, Alan – ‘Details and Analysis of the Donald Trump Tax Reform Plan, September 2016’ (19.09.2016) link: http://taxfoundation.org/article/details-and-analysis-donald-trump-tax-reform-plan-september-2016

Hoo, Sonya & Toder, Eric – ‘The U.S. Tax Burden Is Low Relative to Other OECD Countries’ (08.05. 2006) link: http://www.taxpolicycenter.org/publications/us-tax-burden-low-relative-other-oecd-countries

The Economist – ‘Where did banana republics get their name?’ (21.11.2013) link: http://www.economist.com/blogs/economist-explains/2013/11/economist-explains-16

Trading Economics – ‘United States Government Debt to GDP  1940-2016 | Data | Chart | Calendar’ link: http://www.tradingeconomics.com/united-states/government-debt-to-gdp

Press Statement: IMF Executive Board Completes Sixth PSI Review for Uganda and Approves One-Year Extension of the Program (07.06.2016)

Bank notes Uganda

WASHINGTON D.C., United States of America, June 7, 2016 –  The Executive Board of the International Monetary Fund today completed the sixth review of Uganda’s economic performance under the program supported by the Policy Support Instrument (PSI).1.

In completing the review, the Board approved the authorities’ request for a one-year extension of the current PSI arrangement to facilitate policy continuity and allow sufficient time for ongoing structural reforms to progress and also granted a waiver of the nonobservance of the end-December 2015 assessment criteria on the overall deficit of the central government.

The PSI for Uganda was approved by the Executive Board on June 28, 2013 (see Press Release No. 13/78). Uganda’s program under the PSI aims at maintaining macroeconomic stability and alleviating constraints to growth. The program supports the authorities’ objectives on reforms to the monetary policy framework, tax revenue mobilization, public financial management, and financial sector development. It also backs efforts to improve the business environment, including by preparing the economy better for oil production.

Following the Board discussion, Mr. Min Zhu, Deputy Managing Director and Acting Chair, made the following statement:

“Despite external shocks, and amid election-related uncertainty, Uganda’s economy demonstrated resilience, with robust growth, low inflation, and strong international reserves. However, structural reforms have lagged and need to be revitalized to enhance competitiveness, promote economic diversification, and foster sustained and inclusive economic growth.

“Economic policies will remain focused on keeping inflation low and boosting growth. Fiscal priorities include shifting public spending toward infrastructure and poverty-alleviating expenditures, boosting domestic revenue mobilization, and enhancing public investment efficiency. Continued fiscal prudence could facilitate further monetary policy easing, which would help ease tight credit conditions.

“More progress is needed on key structural reforms. Prompt parliamentary approval of the Public Financial Management Act regulations in line with international best practice, decisive action to reconcile and validate the stock of domestic arrears, and finalizing the charter of fiscal responsibility are paramount steps to further improve governance and strengthen the budget process. Final approval of legal amendments to the Bank of Uganda Act will strengthen the central bank’s independence and support the inflation targeting regime.

“Vigilance is needed to ensure continued financial stability. Plans to further strengthen prudential supervision in line with the Basel III guidelines are welcome. Ensuring that regulatory oversight keeps pace with financial innovation will help preserve financial stability. Prioritizing prompt parliamentary approval of the Amendments of the Anti-Money Laundering Amendment Act and the Insurance Act should help Uganda exit from the FATF gray list, further strengthening the investment climate.”

1 The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF’s Executive Board, signal to donors, multilateral development banks, and markets the Fund’s endorsement of a member’s policies (seehttp://www.imf.org/external/np/exr/facts/psi.htm). Details on Uganda’s current PSI are available at imf.org/uganda.

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